By: Solomons H.B. No. 2409
A BILL TO BE ENTITLED
AN ACT
relating to the disclosure of certain information held by a
business offering check verification or check guarantee services.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 20.06, Business & Commerce Code, is
amended by adding subsection (h) to read as follows:
(h) This section applies to a business offering check
verification or check guarantee services in this state.
SECTION 2. Chapter 20, Business & Commerce Code, is amended
by adding Section 20.11 to read as follows:
Sec. 20.11. CHECK VERIFICATION AND CHECK GUARANTEE
SERVICES; DISCLOSURES TO CONSUMERS. (a) In this section, "check
verifier" means any business offering check verification or check
guarantee services in this state.
(b) On request and proper identification provided by a
consumer, a check verifier shall disclose to the consumer in
writing all information pertaining to the consumer in the check
verifier's files at the time of the request, including:
(1) the criteria used by the check verifier to reject a
check from the consumer;
(2) a set of instructions describing how information
is presented on the check verifier's written disclosure of the
consumer file; and
(3) a toll-free number at which personnel are
available to consumers during normal business hours for use in
resolving a dispute if the consumer submits a written dispute to the
check verifier.
(c) A check verifier may not charge a consumer for
disclosing the information required under Subsection (b) if the
check verifier has rejected a check from the consumer in the 30 days
prior to the consumer's request for information. A check verifier
may otherwise impose a reasonable charge on a consumer for the
disclosure of information pertaining to the consumer in an amount
not to exceed $8.
SECTION 3. This Act takes effect September 1, 2003.